Have you given any thought to your retirement? Worryingly, it’s a topic that most of us neglect until much further down the line, and as your retirement age looms, it’s too late to save for the retirement you had hoped for.
The truth is that we should be looking ahead to our retirement and planning for our “golden years” as early as possible. If requirements are met, you’ll be entitled to a state pension, however, many believe that this simply isn’t enough to live on, let alone enjoy. Planning your financial future means taking control of your finances now and setting up your own personal pension to complement your state pension fund. The personal pensions available on this site will allow you to supplement your workplace pension, and transfer any previous workplace pension contributions that you may have forgotten about. Then when you retire, you’ll have your state pension and your personal retirement savings to enjoy throughout your retirement.
The earlier you start saving for your retirement the lower monthly savings contributions can be, in contrast – the longer you leave things, the higher your contributions will need to be to get you the retirement you want.
It’s easy to think that you have plenty of time to plan and save for your future, but when you consider all the factors of retirement and all the things you might want to do and see, there may be less time than you think to get yourself organized. Let’s take a look at what you should consider if you’re planning your retirement.
Where will you live?
If you’re already a homeowner, then it may want to downsize once you retire, in order to keep costs low. Medical issues may limit your ability to climb stairs or maintain gardens, or if you’re currently renting, you’ll need to factor the cost of rent into your retirement funds to ensure you’ll be able to meet rental payments each month. Or perhaps you want to live overseas and enjoy the heat and lifestyle of a tropical climate.
How will you spend your free time?
As a retiree, your time will become your own. But you’ll need something to fill it with. Many retirees want to spend more time with their families, others want to fill their time with hobbies and new interests. Whether you want to write a book, enjoy long holidays in the sun, cruises, make new friends or even start your own business, you need to ensure you have the funds available to create the life you want.
How long will your money last?
We’re living longer which means you could be enjoying your retirement for decades. So, with this in mind, it’s important that you understand how long your money will last. Outliving your retirement savings is a dangerous position to be in, therefore budgeting your retirement fund and taking other factors such as bills, lifestyle and your health into consideration should help you make a clear plan for your future.
Everyone looks forward to retirement, so set yourself up for the one you deserve and start planning your golden years now!